SIE Exam Question 669: Answer and Explanation

Question: 669

____ Purchasing a call option and a put option on the same stock at the same time.

• A. Collar
• B. Spread
• C. Straddle
• D. Protective put

Correct Answer: C

Explanation:

A straddle is the simultaneous purchase of a call option and a put option on the same stock at the same time.